Marriott sellsMarriott International Inc. said today it has sold its 1,308-room Waikiki Beach Marriott Resort for about $130 million in cash, another step in its policy of letting others own its hotels while it keeps long-term management contracts.
Waikiki Beach Resort
CNL Hospitality paid $130 million
By Russ Lynch
Marriott bought the hotel, the former Hawaiian Regent, for $125.5 million in November from Otaka Inc. The hotel is across Kalakaua Avenue from Kuhio Beach.
The company said it will keep a minority interest in the hotel and continue to manage it. The buyer was a partnership led by CNL Hospitality Corp., a private company based in Florida which bought 12 mainland hotels from Marriott last year under similar arrangements.
Headquartered in Washington, D.C., Marriott operates nearly 2,400 properties in 60 countries, with about 154,000 employees. Last year the company had sales of $419.8 billion.
Last month, Marriott sold the 356-room Kauai Marriott Resort to a Massachusetts real estate investment trust, Hospitality Properties Trust, and also kept the management contract as well as a 232-unit time-share complex on the property.
Marriott International and its various hotel divisions also manage the Maui Marriott Resort & Ocean Club, with 606 hotel rooms and 154 time-share units; the 549-room Ritz-Carlton Kapalua, also on Maui; the 387-room JW Marriott Ihilani Resort & Spa and the 18-hole Ko Olina Golf Club, both on Oahu; and the 345-room Renaissance Wailea Beach Resort on Maui. The company markets the 782-room Renaissance Ilikai Waikiki.
Another division, Marriott Vacation Club International, is developing a 750-villa time-share complex at Ko Olina and has time-share operations on Maui and Kauai.
The Waikiki Beach Marriott sale is the latest in a string of the company's Hawaii hotel deals which included Kokusai Jidosha's sale of the Hyatt Regency Maui in January to the Blackstone Group for about $200 million and Marriott's purchase of the Ritz-Carlton Kapalua in December from Nissho Iwai Corp. for $143 million.